If there was any doubt about the intensity of the housing market in the sand section of Manhattan Beach, the recent sale at 2401 Manhattan Ave should put those doubts to rest.

Manahattan Beach has been an incredible market over the past 2 years and, as realtors, we are used to seeing multiple offer situations and homes selling over asking price. The recent sale at 2401 Manhattan Ave simply amazes, however. Listed on October 27th, the home received immediate and overwhelming interest with multiple offers with most being over the asking price. The home was fairly appropriately priced at $2,495,000 (which would have been an unheard of number a year earlier) and sold for a whopping $3,005,000. The location was ideal as it was a corner lot on a walk street allowing for somewhat unblockable views and just a half block to the beach.

The home, however, was certainly dated and sits on a “half lot” (1350 sq feet, meaning that it does not extend from the walk street to the alley which most homes in the area due….very much limiting the size of a home that could be built to around 2000 feet). As it was built in 1937 and given the condition it certainly appears that the home is going to be torn down with a new high end luxury home replacing it. Given the incredible sales price and construction costs the owner is likely to be in the mid low to mid $4.0M range when all is said and done…… for a 2200 foot home. It shows just what location and a view is worth.

If this doesn’t show just how hot the Manhattan Beach market is, nothing will.

There is no question that the real estate market in Manhattan Beach has been on fire since the beginning of 2013. Record low inventory and intense demand for luxury homes and prime locations has created a building boom not seen in a long while. Multiple offer situations seem to be the norm and the number of all cash buyers continues to drive this already competitive market. This continued demand from buyers and builders alike has driven prices upward to record numbers and nowhere is the demand greater than in the sand section.

The most recent example was the walkstreet home located at 2401 Manhattan Ave. Just a block to the beach and having fantastic corner lot ocean views this home was certainly going to interest both the owner/user looking for a great location and builders seeking the same. The home was listed at $2,495,000 which is already a huge number for a half lot home but all indications appear that the home had at least 11 offers and sold over $3.0M* which is a staggering number for a home with the limitations that come along with a 1,352 square foot lot. Any future build will be limited to around a max square footage of 2000 feet. The last sale of a new construction half lot (not on a walkstreet which certainly adds value) closed at $3.3M at 124 23rd Street. Over $3.0M for this likely tear down at 2401 Manhattan Ave is a very large number indeed and shows just how far values have come in the past 24 months.

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